Frasers Property Ltd

**2.2 Process for Project Evaluation and Selection**

The Manager will be responsible for selecting a portfolio of Sustainable Projects meeting the Eligibility Criteria as described under Section 2.1 ("Use of Proceeds") to be financed by the net proceeds from the SFTs in accordance with the Framework. The Manager may consult internal (which may include the Group's sustainability team and sustainability steering committee) or external experts as relevant to assess eligibility criteria, and the final projects selection will be reviewed and approved by the REIT senior management.

In an unlikely event that FCT does not maintain at least a GRESB 4-Star rating or the GRESB Real Estate Benchmark ceases to exist during the life any SFT, the Manager will develop a separate green or sustainable project list following the additional criteria on the project level defined in Section 2.1 Use of Proceeds.

The list shall be reviewed by the Sustainability team and approved by the senior management of the REIT, following its internal governance policy. The Manager will ensure FCT has sufficient green or sustainable assets matching the total SFT outstanding amount.

Our commitments and roadmap implementation will overseen by the sustainability team, and our cross-functional Sustainability Working Group. The Sustainability Working Group reports to the CEO and meets quarterly.

A robust governance framework stands as a cornerstone in achieving our sustainability goals and targets. Furthermore, effective management serves as the foundation of how we operate and collaborate with our Sponsor on sustainability. The Sponsor's Sustainability Steering Committee ("SSC") drives the sustainability strategy and consists of senior management personnel from the Sponsor who meet six times a year. The SSC meets to assess sustainability performance based on key material metrics and endorse action plans and policies aimed at internalising sustainability practices. [...] FLCT is supported by the Sponsor's sustainability team, as well as a dedicated sustainability manager who is responsible for monitoring and improving the REIT's sustainability performance, including the tracking of our sustainability goals. At the Group level, the SSC's efforts are championed by the Frasers Property Group Sustainability Team to foster close collaboration with FLCT in crafting sustainability action plans and monitoring advancements. [...] Participation in Membership Associations and Alignment with Recognised Standards GRI 2-28 As a part of the real estate industry and a member of Frasers Property, FLCT sees the importance of creating and increasing our positive impact. We do this by actively participating, either independently or through Frasers Property, in international and local movements to advance shared sustainability goals, sharing our knowledge and experience with industry bodies on sustainability matters. [...] REIT Association of Singapore ("REITAS") REITAS serves as the representative advocate for the Singapore REIT ("S-REIT") sector, facilitating member engagement in policy consultations. REITAS supports the growth of the S-REIT industry by improving transparency and governance for investor decision-making, collaborating with regulators for industry-friendly policies. FLCT plays an active role as a member of REITAS, participating in industry events organised by the association as well as relevant surveys e.g. by the regulators which seek to gather feedback from S-REITs. FLCT, through Frasers Property, is also represented on REITAS' As part of Frasers Property, we are also aligned with sectoral, national and international platforms to elevate standards and scale up best practices. These include: - GRESB Real Estate Assessment - Property Council of Australia - Science Based Targets initiative ("SBTi") - Task Force on Climate-related Financial Disclosures - United Nations Global Compact ("UNGC") - United Nations Women's Empowerment Principles ("UNWEP") - Urban Land Institute ("ULI") Singapore - Tripartite Guidelines on Fair Employment Practices ("TAFEP") - Net Zero Carbon Buildings Commitment of the World Green Building Council ("WGBC") - Singapore Green Nation Pledge by Ministry of Sustainability and the Environment

The Board maintains a long-term perspective that includes ensuring that the Group's diverse portfolio incorporates compliance, best practices and a progressive mindset to uphold business resilience. Through its Sustainability and Risk Management Committee, the Board continues to oversee ESG strategy implementation and integration within business decisions and regularly reviews progress against targets. [...] As part of key organisational changes in February 2024, the Group integrated the oversight of risk management, sustainability and strategy functions for greater effectiveness and synergies. The newly formed Sustainability and Risk Committee – expanding from the previous Sustainability Steering Committee – aims to drive more holistic sustainability and risk management across the Group so as to enable more refined assessment of ESG risks and opportunities in business decisions. [...] Our ESG governance structure (page 13 of this Report) takes into account ongoing monitoring, management and oversight of climate-related risks and opportunities. In FY24, we took the following steps to bolster climate-related governance: - Established the Sustainability and Risk Committee (SRC) to drive an integrated approach towards strategy, sustainability and risk management, and support the Board's Sustainability and Risk Management Committee and Frasers Property Executive Leadership Team on the oversight of sustainability and risk management policies, practices and initiatives. More details on the SRC are on page 13 of this Report. - Aligned executive incentives to include climate-related responsibilities for our executive leadership whose remuneration is tied to targets. The specific metrics, their weighting within short-term and long-term incentive plans, and the percentage of total executive remuneration that are linked to ESG-related metrics vary across the organisation. - Conducted tailored climate-related training for the Board and senior leaders in conjunction with Melbourne Business School. More details on the training programme are on page 44 of this Report.

The Group's ESG approach is overseen by our Board of Directors, which provides strategic direction and oversight of ESG standards, management processes and strategies. The Board Sustainability and Risk Management Committee (SRMC) assists the Board in carrying out these responsibilities. The role of the SRMC is to oversee the Group's risk management and sustainability framework and policies. The SRMC will advise the Board on a risk management system to identify, assess and manage material risk issues, determine and monitor material ESG factors, and provide updates and recommendations on ESG factors. [...] We assess our ESG performance and stakeholder interests to ensure that our policy reflects best practices and updated regulations. The frequency of review of this Policy is every two years, and at any other times considered appropriate by the Group Sustainability Team, or the Group Sustainability Steering Committee. The Board Sustainability and Risk Management Committee has oversight over this Policy and its implementation.